Eicher Motors Shares Upbeat After Q1: Here's What Global Analysts Want You To Do

Shares of Eicher Motors were racing at the bourses in early trade on Friday as the company posted its results for the quarter ended June.

What Happened: The automobile major’s June-quarter profit went up 50% to ₹918.3 crore as against the ₹610.7 crore profit it booked in the same quarter last year. The company’s revenue from operations was up 17.33% to ₹3,986.4 crore as compared to the ₹3,397.5 crore revenue it posted in the year-ago period. The company’s topline was mostly in line with estimates but the bottom line beat consensus estimates.

The Royal Enfield maker’s EBITDA for the quarter stood at ₹1,020.8 crore. EBITDA margin was at 25.61%. Earnings per share for the quarter was ₹33.6.

Analysts’ Reaction: Jefferies maintained its “buy” rating on the stock with a price target of ₹4,000. The research firm said that the company’s EBITDA beat estimates reaching an all-time high. UBS maintained its “neutral” rating on the stock with a price target of ₹3,500. The company said that the June quarter earnings were in line but Royal Enfield’s competition is set to intensify.

Price Action: Eicher Motors simmered after surging 3% at open to trade at ₹3,398.65, 0.56% higher from the previous close.

Read Next: Zomato Shares Flying As Company Delivers First Profit: Here’s What Global Analysts Want You To Do